The Need for Biomass
Meeting Gainesville's future energy needs
Gainesville needs the biomass plant now for three main reasons: improved reliability, increased fuel diversity and long-term cost savings for customers.
Improved Reliability
GRU's current fleet of generation units is aging. The average age is 28 years old, and Deerhaven Unit 2, which provides almost all of the community’s around-the-clock base load power, is nearly 30 years old.
Similar to older-model cars, maintenance costs and the risks of breakdown can increase as units age. But replacing a generation unit is not a simple task. It takes years to build a new plant because of the regulatory and environmental permitting process. By not taking prudent steps now, we could be forced to buy replacement power from other sources at potentially volatile market prices.
Except when down for maintenance, Deerhaven Unit 2 runs 24 hours a day, 7 days a week to meet customers’ electricity needs. The biomass plant is designed to help with this base load supply and prevent unplanned outages from forcing us to buy high-cost power over the grid. GRU is currently supplementing its own generation with purchased power from Progress Energy.
Fuel Diversity
Gainesville faces risks by “keeping its eggs in one basket.” Almost two-thirds of the energy GRU produces is fueled by coal, and 25 percent comes from natural gas. The biomass plant will protect customers from rising costs in any one fuel type by providing a new fuel source
Bond-rating agencies agree that adding new generation, more fuel sources and a substantial investment in renewable energy to prepare for potential carbon regulations are important for GRU’s financial strength and for keeping prices stable for customers.
“We believe credit concerns include: Dependence on one generating unit to provide about 65 percent of the system’s electricity…” Standard and Poor’s rating result
Long-term Cost Savings
Of the options currently available in Florida, biomass is the most cost-effective long-term choice. GRU evaluated 28 alternatives to build either a renewable or traditionally fueled plant. Coal was the only less-expensive alternative, but since there is effectively a moratorium on building new coal plants in Florida, this is not a viable option.
